On January 30, 2024, Blue Star Limited (BSE, NSE: BLUESTARCO) announced its Q3 2023-24 results, recording Q3 FY24 Net Profit on the rise by 72% to reach ₹100.46 Cr.
Table of Content
Blue Star Q3 Results Main Takeaways
The Indian cooler Company reported Q3 FY24 results backed by solid growth. Key highlights are mentioned below:
- The Company’s Revenue from Operations rose by 24.9% to reach ₹2241.19 Cr. versus ₹1794.17 Cr in Q3 FY23.
- The Operating Profit of the Company significantly improved to ₹155.35 Cr (6.9% of Revenue) relative to ₹104.71 Cr in Q3FY23 (5.8% of Revenue), backed by a boost in scale and higher gross margins.
- The Company’s Profit Before Exceptional Items rose by a substantial 67.9% to ₹134.39 Cr during Q3 FY24 compared to ₹80.05 Cr in Q3 FY23.
- Net Profit for the quarter grew by a significant 72% to ₹100.46 Cr versus ₹58.41 Cr in the same quarter of the previous fiscal year.
- The Company’s Earnings per equity share for Q3 FY24, on an enhanced basis, was ₹4.89 relative to ₹3.03 for Q3 FY23.
- The carried-forward order book of the Company at the close of Q3 FY24 went up by 24.2% to reach ₹6038.53 Cr, against ₹4861.99 Cr in the same quarter as the previous fiscal year.
- As the Company reported in previous quarters, the Company continues its investing activities to expand its manufacturing capacities, ramping up R&D as well as digitalisation spending as a part of its growth strategy and profitability enhancement programmes. Given this, the Capital Employed at the end of Q3 FY24 increased to ₹2298.88 Cr compared to ₹1505.56 Cr at the close of Q3 FY23.
- The Company closed Q3 FY24 with a net cash position of ₹157.30 Cr relative to a net borrowing of ₹395.85 Cr at the end of Q3 FY23.
Additional Read: Q3 Results Dashboard
Q3 FY24 Segment Performance Highlights
With its Q3 result report, the Company shared its segment-wise performance shedding light on positive quarterly earnings:
- Revenue from the Electro-Mechanical Projects and Commercial Air Conditioning Systems segment saw growth of 17.9% compared to the same quarter of the previous fiscal year.
- In the Electro-Mechanical Projects business of the Company, order finalisations from data centres and factories marked healthy growth.
- The segment of Unitary Products Revenue went up 35.5% compared to the same quarter of the previous fiscal year.
- The Revenue of Industrial Systems and Professional Electronics Segment grew 20.1% versus the previous year’s same quarter.
The Management’s Take on Q3 Results
The MD and Vice-Chairman of Blue Star Limited had some key aspects of Q3 results to share and these are highlighted below:
- In the present fiscal year, the Company has managed to deliver proficiency in its operations with optimal performance across all business segments.
- In the quarter, the Company witnessed a sustained and positive performance due to the vibrant festive season and strong demand from commercial and corporate customers. Additionally, the Company also witnessed healthy demand from Tier 3 and 4 cities
- The Company expects the upcoming summer to generate solid demand in the commercial refrigeration area and room air conditioning segment.
- As the carried-forward B2B business order book is healthy, the Company expects that the pace of execution will be sustained.
Additional Check: Blue Star Share Price
Q3 FY24 Result Summary
Blue Star is the leading Ventilation, Heating, Commercial Refrigeration, and Air conditioning company in India, having an annual revenue of more than ₹7977 crores (972 million USD), a wide network of 30 offices, 7 state-of-the-art manufacturing units, including the new modern deep freezer unit at Wada, and Blue Star Climatech Limited’s premier facility at Sri City. With 3132 employees, plus 4040 channel partners, the Company boasts 8000 stores for retailing room ACs, cold rooms, chillers, and refrigeration products. The stand-out feature of Blue Star’s business is the Company’s business model which makes the business offer end-to-end products and services, from manufacturing and contracting to servicing products.
In Q3 FY24, the Company’s growth momentum was evident through its sales of room ACs in the festive period, with evolving demand from smaller towns. The Company’s electromechanical projects business and commercial segment of air conditioning also saw strong demand. On account of this, the Company witnessed solid revenue metrics and sustained its operating margins considerably well. The upcoming summer months are predicted to be good growth drivers for the Company which is optimistic about ending its financial year (the Company’s 80th anniversary year) on a positive note.
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